ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUD - US03524A1088 - ADR
61.53 USD
-0.32 (-0.52%)
61.58 USD
+0.05 (+0.08%)
We assign a fundamental rating of 4 out of 10 to BUD. BUD was compared to 33 industry peers in the Beverages industry. While BUD is still in line with the averages on profitability rating, there are concerns on its financial health. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BUD had positive earnings in the past year.
In the past year BUD had a positive cash flow from operations.
Each year in the past 5 years BUD has been profitable.
Each year in the past 5 years BUD had a positive operating cash flow.
1.2 Ratios
BUD has a Return On Assets of 3.37%. This is comparable to the rest of the industry: BUD outperforms 48.48% of its industry peers.
BUD has a Return On Equity (8.82%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.35%, BUD is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for BUD is significantly below the industry average of 11.60%.
The last Return On Invested Capital (6.35%) for BUD is above the 3 year average (6.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROIC | 6.35% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
Looking at the Profit Margin, with a value of 12.16%, BUD is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Profit Margin of BUD has declined.
BUD has a Operating Margin of 26.51%. This is amongst the best in the industry. BUD outperforms 84.85% of its industry peers.
BUD's Operating Margin has declined in the last couple of years.
BUD has a Gross Margin of 55.70%. This is in the better half of the industry: BUD outperforms 72.73% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
BUD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BUD has less shares outstanding
BUD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BUD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that BUD is in the distress zone and has some risk of bankruptcy.
BUD has a Altman-Z score of 1.69. This is comparable to the rest of the industry: BUD outperforms 42.42% of its industry peers.
The Debt to FCF ratio of BUD is 6.48, which is on the high side as it means it would take BUD, 6.48 years of fcf income to pay off all of its debts.
BUD has a Debt to FCF ratio of 6.48. This is comparable to the rest of the industry: BUD outperforms 57.58% of its industry peers.
BUD has a Debt/Equity ratio of 0.89. This is a neutral value indicating BUD is somewhat dependend on debt financing.
BUD has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: BUD underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.03
WACC6.18%
2.3 Liquidity
BUD has a Current Ratio of 0.64. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BUD (0.64) is worse than 78.79% of its industry peers.
A Quick Ratio of 0.48 indicates that BUD may have some problems paying its short term obligations.
BUD's Quick ratio of 0.48 is on the low side compared to the rest of the industry. BUD is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
BUD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.09%.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.83% on average per year.
Looking at the last year, BUD shows a decrease in Revenue. The Revenue has decreased by -1.34% in the last year.
BUD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.69% yearly.
EPS 1Y (TTM)6.09%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%1.02%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
3.2 Future
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
Based on estimates for the next years, BUD will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y6.36%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
EPS Next 5Y10.4%
Revenue Next Year0.63%
Revenue Next 2Y2.97%
Revenue Next 3Y3.21%
Revenue Next 5Y4.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.54, BUD is valued correctly.
BUD's Price/Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of BUD to the average of the S&P500 Index (26.31), we can say BUD is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.13, which indicates a correct valuation of BUD.
BUD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BUD to the average of the S&P500 Index (36.59), we can say BUD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
BUD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BUD is cheaper than 75.76% of the companies in the same industry.
BUD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BUD is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y10.43%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
BUD's Dividend Yield is comparable with the industry average which is at 3.12.
Compared to an average S&P500 Dividend Yield of 2.40, BUD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BUD pays out 51.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
61.53
-0.32 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.3%
Inst Owner Change-3.95%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap120.15B
Revenue(TTM)58.61B
Net Income(TTM)7.12B
Analysts82.58
Price Target80.24 (30.41%)
Short Float %0.88%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.01%
Max EPS beat(2)8.16%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)1.01%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)7.13%
EPS beat(12)12
Avg EPS beat(12)8.52%
EPS beat(16)14
Avg EPS beat(16)8.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)0.61%
PT rev (3m)-1.94%
EPS NQ rev (1m)-3.5%
EPS NQ rev (3m)-8.6%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 14.13 | ||
| P/S | 2.05 | ||
| P/FCF | 10.31 | ||
| P/OCF | 7.91 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.91 |
EPS(TTM)3.72
EY6.05%
EPS(NY)4.35
Fwd EY7.07%
FCF(TTM)5.97
FCFY9.7%
OCF(TTM)7.78
OCFY12.64%
SpS29.97
BVpS41.31
TBVpS-38.52
PEG (NY)2.6
PEG (5Y)N/A
Graham Number58.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROCE | 8.71% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 76.01% | ||
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% | ||
| FCFM | 19.92% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexgc growth 3Y11.31%
ROICexgc growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 72.68% | ||
| Profit Quality | 163.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.69 |
F-Score7
WACC6.18%
ROIC/WACC1.03
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)6.09%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%1.02%
EPS Next Y6.36%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
EPS Next 5Y10.4%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
Revenue Next Year0.63%
Revenue Next 2Y2.97%
Revenue Next 3Y3.21%
Revenue Next 5Y4.14%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year39.9%
EBIT Next 3Y16.24%
EBIT Next 5Y11.94%
FCF growth 1Y56.54%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y19.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%
ANHEUSER-BUSCH INBEV-SPN ADR / BUD FAQ
Can you provide the ChartMill fundamental rating for ANHEUSER-BUSCH INBEV-SPN ADR?
ChartMill assigns a fundamental rating of 4 / 10 to BUD.
What is the valuation status for BUD stock?
ChartMill assigns a valuation rating of 5 / 10 to ANHEUSER-BUSCH INBEV-SPN ADR (BUD). This can be considered as Fairly Valued.
How profitable is ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
ANHEUSER-BUSCH INBEV-SPN ADR (BUD) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for BUD stock?
The Earnings per Share (EPS) of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is expected to grow by 6.36% in the next year.
How sustainable is the dividend of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
The dividend rating of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is 3 / 10 and the dividend payout ratio is 51.68%.